Chapter 7
CLOSING-OUT SALES*
Sections:
5-7.03 Licenses: Applications: Requirements.
5-7.06 Duties of the licensees.
5-7.07 Requisites for established businesses.
5-7.08 Intervals between sales.
* Sections 5-7.01 through 5-7.07, codified from Ordinance No. 480 N.C.S., repealed by Section 1, Ordinance No. 405 C-M, effective September 8, 1977.
5-7.01 Definitions.
For the purposes of this chapter, certain words and phrases used herein are defined as follows:
(a) “Closing-out sale” shall mean a sale held in such a manner as to cause the public reasonably to believe that, upon the disposal of the stock-in-trade, inventory, or goods on hand, the business will cease and be discontinued, including, but not limited to, the following types or described sales: adjusters; adjustments; alterations; assignees; bankrupt; benefit of administrators; benefit of creditors; benefit of trustees; building demolition; creditors’ committee; final days; fire sales; forced out; lease expire; liquidation; loss of lease; and quitting business.
(b) “Goods” shall mean and include any goods, wares, merchandise, or other property capable of being the object of a sale regulated by this chapter.
(c) “Person” shall mean any individual, firm, partnership, association, corporation, company, or organization of any kind.
(d) “Removal of business sale” shall mean a sale held in such a manner as to cause the public reasonably to believe that the person conducting the sale will cease and discontinue business at the place of sale upon the disposal of the stock-in-trade, inventory, or goods on hand and will then move to and resume business at a new location in the City or will then continue business from other existing locations in the City.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.02 Licenses: Required.
It shall be unlawful for any person to sell or offer to sell any goods at a sale to be advertised or conducted by any means to be either a closing-out or a removal of business sale without first obtaining a City license therefor.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.03 Licenses: Applications: Requirements.
A person desiring to conduct a sale regulated by this chapter shall make a written application to the Director of Finance setting forth and containing the following information:
(a) The true name and address of the owner of the goods to be the object of the sale;
(b) The true name and address of the person who will manage, supervise, and stand directly responsible for the conduct of the sale;
(c) A description of the place where such sale is to be conducted;
(d) The nature of the occupancy, whether by lease or sublease, and the effective date of the termination of such occupancy;
(e) The dates, period of time, and hours during which the proposed sale is to be conducted;
(f) A full and complete statement of the facts in regard to the sale, including the reason for the urgent and expedient disposal of goods thereby and the manner in which the sale will be conducted;
(g) The means to be employed in advertising such sale, together with the proposed content of any advertisement; and
(h) A complete and detailed inventory of the goods to be sold at such sale as disclosed by the applicant’s records, which itemized inventory shall be attached to and become a part of the application.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.04 Licenses: Fees.
The applicant shall pay a license fee in the sum set by resolution of the Council therefor.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.05 Licenses: Issuance.
Upon submitting a complete form of application and paying the required license fee, the Director of Finance shall issue a license on the following terms:
(a) The license shall authorize the sale described in the application for a period of time not to exceed thirty (30) calendar days following the license issuance date.
(b) The Director of Finance shall renew a license upon an application for one period of time only, such period of time to be in addition to the thirty (30) days permitted in the original license and not to exceed thirty (30) calendar days, when the Director of Finance finds:
(1) That facts exist justifying the license renewal;
(2) That the licensee has filed an application for renewal;
(3) That the licensee has submitted with the application for renewal a revised inventory showing the items listed on the original inventory remaining unsold and not listing any goods not included in the original application and inventory; and
(4) That additional time is required to conduct the close-out sale.
(c) The license shall authorize only the sale of goods described in the inventory attached to the application.
(d) Upon being issued a license, the licensee shall surrender to the Director of Finance all other business licenses or permits he may hold at that time applicable to the location and goods covered by the application for a license.
(e) Any license provided for in this chapter shall not be assignable or transferable.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.06 Duties of the licensees.
A licensee shall as a condition to the issuance of a license:
(a) Make no additions whatsoever during the period of the licensed sale to the goods set forth in the inventory attached to the application for a license;
(b) Conduct the licensed sale during normal business hours and as set forth on the license issued for the licensed sale;
(c) Conduct no outdoor sales, displays, or promotions unless otherwise specifically permitted to do so under appropriate City approval and regulation;
(d) Obey all laws, local, State, and Federal;
(e) Comply with the provisions of Chapter 6 of Title 8 of this Code regarding the use and placement of signs;
(f) Refrain from employing any untrue, deceptive, or misleading advertising;
(g) Conduct the licensed sale in strict conformity with any advertising or holding out incident thereto; and
(h) Keep available at the place of business a duplicate copy of the inventory submitted with the application and present such duplicate to inspecting officers upon request.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.07 Requisites for established businesses.
Any person who has not been the owner of a business advertised or described in the application for a license pursuant to this chapter for a period of at least six (6) months prior to the date of the proposed sale shall not be granted a license; provided, however, upon the death of a person doing business in the City, his or her heirs, devisees, or legatees shall have the right to apply at any time for a license as required by this chapter.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.08 Intervals between sales.
Any person who has held a closing-out sale as regulated by this chapter within the City within one year last past from the date of such application shall not be granted a license.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.09 Restricted locations.
Where a person who applies for a license pursuant to this chapter operates more than one place of business, the license issued shall apply only to the one place of business or branch specified in the application, and no other store or branch shall advertise or represent that it is cooperating with it or in any way participating in the licensed sale, nor shall the store or branch conducting a licensed sale advertise or represent that any other store or branch is cooperating with it or participating with it in any way in the licensed sale.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.10 Persons exempt.
The provisions of this chapter shall not apply to or affect the following persons:
(a) Persons acting pursuant to an order of a process of a court of competent jurisdiction;
(b) Persons acting in accordance with their powers and duties as public officials;
(c) Duly licensed auctioneers selling at auction; and
(d) Any publisher of a newspaper, magazine, or other publication who publishes in good faith any advertisement without knowledge of its false, deceptive, or misleading character or without knowledge that the provisions of this chapter have not been complied with.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)
5-7.11 Violations: Penalties.
Any person violating any of the provisions of this chapter shall be deemed guilty of an infraction as provided in Chapter 2 of Title 1 of this Code.
(§ 1, Ord. 405 C-M, eff. September 8, 1977)